FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Wiri Small Business Loans
Let me know how you are able to avail the Wiri Small Business Loans
Wiri unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from a traditional business loan?
It is possible to apply to the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and the funds could be available in just 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. The business loan is a loan that is priced upfront therefore you’ll know in advance the total amount due, which includes any interest, fees or charges. Then, it is broken down into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company need, such as cash flow management, business remodeling, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Wiri Business Loans
What is the Larger Wiri Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit of this size the business needs to have been operating for at least three years with an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A large company loan is a great option for almost all business reason, such as business renovations, to purchase equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It’s by taking a charge on assets, which could also include registering this in the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature, rather than defining security over an asset. The person signing the guarantee is personally liable in the event that the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
Caveats are legal form of document to offer the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger company loans that is greater than $250,000 it is possible to offer an initial pre-approval to simplify the process. We may be able to do this without a credit check, and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial health questions. This is not an offer or guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be based on different terms.
Application process
Do I qualify for funds?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application in few minutes and an experienced company expert in lending will be in touch to assist you.
To apply for up $100,000 you’ll require identification details (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent and 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within an hour if you apply within standard company time and permit us to utilise the bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we will be able to provide a decision within an business day.
For the Larger Business Loan ($100K to $500K) we could be capable of offer you with conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be quicker based on the particular circumstances of each application. Certain offers have been approved in the space of 24 hours.
The fastest way would be to ensure you apply during normal company hours. Also, allow us to use our advanced bank verification system to verify your bank information online. If you upload copies of your bank statements it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour – provided you submit your request during normal business timings and let us use the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements we can offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to offer the conditional pre-approval within about six hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some agreements have been approved within the space of 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours, and let us use the advanced bank verification system link to instantly confirm your bank details online. If you choose to upload copies of your bank statements, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we consider a variety of factors for determining how much we can lend you health of the company and the level of payments your company will be able to support. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
When you make an application for a set amount, we will consider a number of factors to determine how much we can lend you such as health of the company and the extent of repayments that your business can afford. The amount you receive from your loan will depend on the particular circumstances the business.
Fees & repayments
What is the cost for an business loan?
When you make an application for business loans with us business loan, we’ll assess the risk assessment the business and provide you with a customised offer that includes the amount of loan, the term and the interest rates. This company loan is an upfront-priced loan so you will be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What determines the amount I will be charged?
Interest rates for company loans rates differ based on various factors including the amount borrowed, the company assets the money will be used for as well as the field the business operates in, how long the business is in operation as well as whether the company has sufficient cash flow to support the loan, as well as the overall health and creditworthiness of the company.
What are the cost?
There aren’t any hidden charges with our business loans. You’ll know precisely how much you need to pay and when, right from the day you sign up. There’s no compounding interest, and no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can apply for a loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay all of your loan in full at any time.
If you decide to take this route, please call our helpful company loans specialists. The professionals will provide you with the details of your repayment along with an early payout estimate. It will be calculated using the total of the principal balance and accrued interest to the time of the early payout plus 1.5 percent of the principal balance plus any outstanding fees.
How do repayments work?
To help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and knowing how we collect the information we collect, use, share and ensure the security of your information is vital and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system link to immediately verify your bank account information online so we can offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner makes use of assets they own to secure a loan. The asset can be a personal asset like the family home, or it could be a business property like a truck or piece of equipment.
The majority of lenders, not just the big banks, tend to make loans secured by an asset. If you have trouble paying back the loan, then your asset may be transferred to the lender. In essence, it’s an opportunity to secure new financing by using the worth of the asset you already own.
Are I need security to get a company loan?
Up to $150K in loans no asset security is required prior to the loan’s access, however we do require an individual guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract), asset security will never be needed. For loans that exceed $150K, generally there is the option of a personal guarantee and security in the form charges on assets.